Which organizational structure is characterized by divisions that manage their own resources and support functions?

The divisional organizational structure is an arrangement where divisions operate semi-autonomously and manage their own resources and support functions. This structure allows each division to focus on a particular product line, market, or geographical area, which leads to greater flexibility and responsiveness to market changes.

In this structure, each division typically has its own sales, marketing, finance, and operational departments, enabling them to make decisions quickly and strategically align with their specific goals. This autonomy helps divisions cater effectively to their unique customer bases, fostering innovation and a tailored approach to service and product development.

In contrast, functional organizational structures group employees based on their specific roles and functions, which can lead to less flexibility and slower decision-making in a fast-paced environment. Matrix structures combine functional and divisional aspects, which can create complexity and confusion among reporting lines. Flat organizational structures aim to reduce hierarchy, but they do not inherently provide the same level of divisional autonomy and resource management as the divisional approach.

Overall, the divisional organizational structure is particularly beneficial for large organizations with diverse products or markets, allowing for a clear focus and specialized management within each division.